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Japan’s leading securities regulator will warn Binoy that it must cease operations in the country without a license

Citing a person familiar with the case, Nikkei reports that the Japan Financial Services Agency (FSA) will send a formal warning to Binance, who allegedly began expanding its activities in Japan without permission of the regulatory agency.

Headquartered in Hong Kong and having benefited from an initial offer of coins (ICO) last year, Binance quickly emerged as one of the cryptocurrency purses. the most popular in the world. Currently, Binance ranks as the largest cryptocurrency trading platform in the world, with a 24-hour volume of nearly $ 1.9 billion.

Binance has its own utility token – BNB – and the exchange operator has announced that it has begun the development of its own public blockchain, which will serve as a basis for a decentralized exchange (DEX ). The NBB’s price has fallen about 10% from its highest intraday after the initial report, although its 24-hour performance is still positive.

Binance has stated that it intends to apply for an FSA license, but the fact that it has expanded its activities in that jurisdiction without the approval of the regulators could attract more money. pay attention to the demand of the company.

Indeed, the FSA stepped up its monitoring of the country’s cryptocurrency trading markets across the board, a move that came in response to a hacking at Tokyo’s Coincheck Exchange in January – an incident that resulted in the theft of more than $ 530 million chips.

The country’s 16 licensed cryptocurrency scholarships also announced that they would be a self-regulatory organization charged with establishing and enforcing best practices in the sector.

NCC could not reach Binance to comment, but CEO Changpeng Zhao tweeted that the company was engaged in a constructive dialogue with the FSA.

“We are in constructive dialogue with Japan’s FSA, and we have not received any warrants,” said Zhao. “It does not make sense for JFSA to tell a newspaper before telling us, while we have an active dialogue with them.”

Image from Shutterstock.

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